Question: The cash flows associated with a project are shown below. The interest rate varies from year to year as shown. EOY Cash Flow 0 $0
The cash flows associated with a project are shown below. The interest rate varies from year to year as shown.
| EOY | Cash Flow |
| 0 | $0 |
| 1 | $600 |
| 2 | $-300 |
| 3 | $700 |
| 4 | $0 |
| 5 | $1,000 |
| Interest Period | Interest Rate |
| EOY 0 to EOY 1 | 10%/yr |
| EOY 1 to EOY 2 | 10%/yr |
| EOY 2 to EOY 3 | 8%/yr |
| EOY 3 to EOY 4 | 8%/yr |
| EOY 4 to EOY 5 | 12%/yr |
Determine the amount required to create an equivalent uniform annual series of cash flows. $_________
Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 3%
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